Institutional arrangements for reporting the use of market mechanisms under the enhanced transparency framework to avoid double counting
Parties to the Paris Agreement agreed to ensure avoidance of double counting of emissions reductions from the use of international market mechanisms. Although useful data may be available, Parties have limited experience and guidance from the UNFCCC on what data to report in the transparency framework pre-Paris Agreement. If the current reporting of emissions continues, Parties may fail to meet their goal to avoid double counting.
For enhancing reporting of market mechanisms, an international guidance for national reporting under the enhanced transparency framework, with more details on reporting elements, can help Parties report in a manner that helps ensure avoidance of double counting. Domestically, institutional arrangements may be enhanced by integrating arrangements for reporting market mechanisms with the arrangements for preparing GHG inventory. Challenges, and capacity needs, if any, and improvement plans needs to be identified in the process of improvement planning and capacity needs assessment for continuous improvement in overall reporting.
This paper proposes three ways to enhance institutional arrangements for reporting, particularly reporting of market mechanisms to avoid double counting:
1. Adopting international guidance for reporting international market mechanisms to avoid double counting, under the enhanced transparency framework Modalities, Procedures and Guidelines (MPGs), and complemented with guidance for robust accounting of emissions reductions from international market mechanisms.
2. Enhancing domestic institutional arrangements by integrating arrangements for reporting of market mechanisms with the arrangements for GHG inventory preparation, broadening stakeholders’ engagement, and developing in-country capacity.
3. Identifying the challenges, needs, and possible ways to improve reporting the use of market mechanisms and communicating them in the national reports (national communications and/or Biennial Update Report).
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